Lyxor has made a significant addition to its low-cost, ‘Core’ range with the listing of a new fixed income ETF. The Lyxor Core Global Government Bond (DR) UCITS ETF tracks the FTSE G7 and EMU Government Bond Index – Developed Markets, which is part of the well-established FTSE World Government Bond Index (WGBI) family. This new ETF invests in investment-grade government bonds issued by G7 or Eurozone countries and is diversified across all major markets including Japan, the United Kingdom, Germany, Italy, France, the USA and Canada.
Part of Lyxor’s low-cost ‘Core’ range which has EUR8.6 billion Assets Under Management (‘AUM’)1 since its launch three years ago, this new ETF is physically replicated and has a Total Expense Ratio (‘TER’) of just 0.09 pdr cent. Investors looking to reduce volatility and mitigate the impact of currency moves on this Fund’s total return have the opportunity to invest in the euro-hedged share class which has a TER of 0.15 per cent.
The ETF is domiciled in Luxembourg and, in line with Lyxor’s ‘Core’ principles of simplicity, security and familiarity, does not lend securities.
Philippe Baché, Head of Fixed Income at Lyxor ETF, says: “This new ETF is just the latest in a series of enhancements we’ve been making to our fixed income range. It allows investors to efficiently own a diversified government bond portfolio in one low-cost ETF. It could help to maximise diversification across markets and issuers at the same time, thus improving the risk profile, as well as limit the concentration risk of investing in a single local market. We’ve selected FTSE Russell for the quality of its government bond indices.”
The Lyxor Core Global Government Bond (DR) UCITS ETF is listed on the London Stock Exchange. The euro-hedged share class is listed on Borsa Italiana.
